Posted on
January 14, 2010
at
5:22 am
Hi please explain how taxes work with credit card settlement, thanks!
Posted on
January 14, 2010
at
5:24 am
Hello, okay after a settlement has been completed, the creditor sends you a form, and they have to send the IRS one too - if the IRS receives that from your creditor but you failed to do so (when you file your return you should report the saved amount as income) you would be fined.
Posted on
January 14, 2010
at
5:37 am
What your creditors would send you is the IRS form 1099 - and if you're asking if you can be exempted from reporting your settlement as an income, you can apply for insolvency, you'd need an IRS form 982 for that.
Posted on
January 14, 2010
at
5:42 am
Approximately how much is the IRS taking away?
Posted on
January 14, 2010
at
5:47 am
I am not sure but I heard that it's about 25% of the settled amount. Also, if the forgiven amount is below $600 you don't have to report that as income.
Posted on
January 14, 2010
at
9:23 pm
thanks for Your Information I Need This
Posted on
April 7, 2010
at
3:58 am
No problem svj2me! Taxes shouldn't really discourage consumers from enrolling in credit card settlement programs. Paying tax is not the end game, it's getting rid of the debt, and starting over.
Posted on
May 7, 2010
at
4:51 am
The IRS will let the amount be deferred until the next year. However, they must be contacted and informed that the amount will be deferred to the next year. Appropriate paperwork must be filled out for this as well.
Posted on
May 24, 2010
at
6:50 am
I suggest you to take advice from any professional credit card settlement company.
Posted on
May 25, 2010
at
3:29 pm
Anything over $600 dollars saved on any one settlement you must claim as income.
